Institutional racism is responsible for the high Hispanic dropout rate in Michigan. The term "pushout" is more appropriate than "dropout" for these students who are systematically ignored and devalued until they become alienated and leave school. Negative expectations are broadcast to Hispanic American students as soon as they enter elementary school, where they are ignored in the classroom and placed in low-ability groups and their parents are discouraged from participation. The process of disengagement begins in middle and junior high school, when the self-image is buffeted by a conscious awareness that teachers do not care about them. The sense of alienation deepens in high school and participation in academic and extracurricular activities decreases rapidly. More Hispanics are victimized in high school Spanish classes, where their language ability is denigrated, than in any other single class. Recommendations for improvement are based on an ongoing inservice training program for all school personnel and the active involvement of Hispanic parents. The following materials are appended: (1) a proposed state plan for reversing the Hispanic student dropout rate in Michigan; (2) a fact sheet on the Hispanic educational experience; (3) a checklist for evaluating a school's multiethnic orientation; and (4) a list of 29 references. (FMW)